Cray Inc. (Nasdaq:CRAY) combines computation and creativity so visionaries can keep asking questions that challenge the limits of possibility. Drawing on more than 45 years of experience, Cray develops the world’s most advanced supercomputers, pushing the boundaries of performance, efficiency and scalability. Cray continues to innovate today at the convergence of data and discovery, offering a comprehensive portfolio of supercomputers, high-performance storage, data analytics and artificial intelligence solutions. Go to www.cray.com for more information.
Total revenue decreased by $59.6 million for the first six months of 2019 compared to the first six months of 2018, from $199.8 million to $140.2 million, due to lower product revenue. Product revenue was $63.8 million lower in the first six months of 2019 compared to the first six months of 2018, primarily driven by fewer high-dollar value product acceptances in the first half of 2019 as compared to the first half of 2018.
Net loss for the first six months of 2019 was $72.0 million compared to net loss of $36.0 million for the same period in 2018. The increase in net loss was primarily driven by lower product revenue, transaction costs of $7.6 million related to the Merger, and an increase in research and development costs of $13.7 million.
Net cash used in operating activities was $71.2 million for the first six months of 2019 compared to $0.2 million for the first six months of 2018. Net cash used in operating activities for the first six months of 2019 was primarily driven by our net loss, adjusted for non-cash expenses, of $56.0 million, and a $16.4 million decrease in customer contract liabilities as the associated revenue was recognized. These amounts were partially offset by a decrease in accounts receivable of $11.4 million due to payments from customers.